Tech Mahindra Ltd. share price target

Q4 revenue flattish at US$ 1.7bn (+0.3% QoQ CC) with 10% growth in FY23 to US$ 6.6bn

Tech Mahindra’s (TechM) Q4FY23 revenue grew 0.3% QoQ CC, flat QoQ in US$ terms, a tad lower than our and consensus estimate (ISEC: 0.5% QoQ US$, BBG cons: 0.2% QoQ US$). Revenue growth was led by communication (0.7% QoQ US$), manufacturing (1.5% QoQ US$) and BFS (0.3% QoQ US$).

Given the uncertainty from the world's largest economies there might be delay in decision making on IT budgets. We recommend HOLD on the stocks.

Tech Mahindra (TechM) has announced appointment of Mohit Joshi as MD & CEO: Mr. Mohit Joshi will take over after the existing CEO and MD, Mr. CP Gurnani, retires on December 19, 2023. Mohit Joshi will join well before that date to allow sufficient transition time, as per TechM.

We attended Tech Mahindra (TechM) Investor Day 2023, wherein management outlined the company’s focus areas: 1) Growth levers, viz. large transformation deals, and deeper alliances and partnerships. 2) Build technology competencies via investing in ‘products and platforms’ (7% of revenue) and co-creating solutions with client partners.